SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 

 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For May, 2019
(Commission File No. 1-31317)
 

 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
(Exact name of registrant as specified in its charter)
 
Basic Sanitation Company of the State of Sao Paulo - SABESP
(Translation of Registrant's name into English)
 


Rua Costa Carvalho, 300
São Paulo, S.P., 05429-900
Federative Republic of Brazil
(Address of Registrant's principal executive offices)



Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

 
 

 

CIA. DE SANEAMENTO BÁSICO DO ESTADO DE SÃO PAULO - SABESP

Rui de Britto Álvares Affonso

Chief Financial Officer and Investor Relations Officer

Mario Azevedo de Arruda Sampaio

Head of Capital Markets and Investor Relations

 

 

 

SABESP announces 1Q19 results

 

São Paulo, May 9, 2019 - Companhia de Saneamento Básico do Estado de São Paulo - SABESP (B3: SBSP3; NYSE: SBS), one of the largest water and sewage services providers in the world based on the number of costumers, announces today its 1Q18 results . The Company’s operating and financial information, except when indicated otherwise is presented in Brazilian Reais, in accordance with the Brazilian Corporate Law. All comparisons in this release, unless otherwise stated, refer to the same period of 2018 .

SBSP3: R$ 47.80/share

SBS: US$ 12.11 (ADR=1 share)

Total shares: 683,509,869

Market value: R$ 32.672 billion

Closing quote: 05/09/2019

 

 

 


 

 

 

 

 


 
 

1.     Financial highlights

 

          R$ million  
    1Q19   1Q18   Var. (R$)   %  
  Gross operating revenue ¹   3,536.1   3,280.8   255.3   7.8  
  Construction revenue   603.5   647.2   (43.7)   (6.8)  
  COFINS and PASEP and TRCF taxes ²   (261.1)   (228.4)   (32.7)   14.3  
(=)   Net operating revenue   3,878.5   3,699.6   178.9   4.8  
  Costs and expenses   (2,156.4)   (1,998.7)   (157.7)   7.9  
  Construction costs   (590.0)   (632.7)   42.7   (6.7)  
  Equity result   1.8   2.8   (1.0)   (35.7)  
  Other operating revenue (expenses), net   7.8   11.5   (3.7)   (32.2)  
(=)   Earnings before financial result, income tax and social contribution   1,141.7   1,082.5   59.2   5.5  
  Financial result   (150.5)   (193.9)   43.4   (22.4)  
(=)   Earnings before income tax and social contribution   991.2   888.6   102.6   11.5  
  Income tax and social contribution   (343.9)   (308.2)   (35.7)   11.6  
(=)   Net income   647.3   580.4   66.9   11.5  
  Earnings per share* (R$)   0.95   0.85      

 

(1) Includes Regulation, Control and Inspection Fee (TRCF), totaling R$16.7 million in 1Q19 and R$15.5 million in 1Q18.

(2) Includes TRCF transfer, totaling R$14.6 million in 1Q19 and R$13.5 million in 1Q18.

(*) Total shares = 683,509,869

 

Adjusted EBITDA Reconciliation (Non-accounting measures)

 

          R$ million  
    1Q19   1Q18   Var. (R$)   %  
  Net income   647.3   580.4   66.9   11.5  
  Income tax and social contribution   343.9   308.2   35.7   11.6  
  Financial result   150.5   193.9   (43.4)   (22.4)  
  Other operating revenues (expenses), net   (7.8)   (11.5)   3.7   (32.2)  
(=)   Adjusted EBIT*   1,133.9   1,071.0   62.9   5.9  
  Depreciation and amortization   410.8   328.0   82.8   25.2  
(=)   Adjusted EBITDA **   1,544.7   1,399.0   145.7   10.4  
  (%) Adjusted EBITDA margin   39.8   37.8      

 

* Adjusted EBIT is net income before: (i) other operating revenues/expenses, net; (ii) financial result; and (iii) income tax and social contribution.

** Adjusted EBITDA is net income before: (i) depreciation and amortization expenses; (ii) income tax and social contribution; (iii) financial result; and (iv) other operating revenues/expenses, net.

 

 

In 1Q19, net operating revenue, which considers construction revenue, totaled R$3,878.5 million, up 4.8% year-over-year.

Costs and expenses, which consider construction costs, totaled R$2,746.4 million, up 4.4% year-over-year.

Adjusted EBIT, totaling R$1,133.9 million, up 5.9% over the R$1,071.0 million reported in 1Q18.

Adjusted EBITDA, totaling R$1,544.7 million, up 10.4% over the R$1,399.0 million reported in 1Q18 (R$6,686.3 million in the last 12 months).

The adjusted EBITDA margin in 1Q19 was of 39.8%, over 37.8% in 1Q18 (41.1% in the last 12 months).

Excluding the effects of revenue and construction costs, adjusted EBITDA margin reached 46.8% in 1Q19, over 45.4% in 1Q18 (49.1% in the last 12 months).

In 1Q19, net income reached R$647.3 million, over a net income of R$580.4 million in 1Q18.

 

2. Gross operating revenue

 

The gross operating revenue related to the sanitation services, totaling R$3,536.1 million, which does not consider construction revenue, had an increase of R$255.3 million or 7.8%, when compared to the R$3,280.8 million in 1Q18.

The main factors that led to the increase were:

 

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·         3.5% tariff repositioning index since June 2018;

·         3.1% increase in total billed volume: 0.3% in water and 6.6% in sewage ; and

·         Beginning of operations in the municipality of Guarulhos in January 2019, generating an increase of R$70.2 million in operating revenue.

 

3. Construction revenue

 

Construction revenue decreased by R$43.7 million or 6.8% year-over-year. This variation was mainly due to the increase in asset investments carried out in 1Q18, mostly in São Lourenço Production System (PPP).


4. Billed volume

 

The tables below show billed volumes of water and sewage, quarter-over-quarter, according to the consumer category and region.

 

WATER AND SEWAGE BILLED VOLUME (1) PER CUSTOMER CATEGORY - million m 3
    Water       Sewage     Water + Sewage
Category   1Q19   1Q18   %   1Q19   1Q18   %   1Q19   1Q18   %  
Residential   432.1   406.8   6.2   369.7   346.5   6.7   801.8   753.3   6.4  
Commercial   43.6   42.0   3.8   42.3   40.0   5.7   85.9   82.0   4.8  
Industrial   8.2   7.8   5.1   9.9   9.7   2.1   18.1   17.5   3.4  
Public   10.4   9.7   7.2   9.3   8.7   6.9   19.7   18.4   7.1  
Total retail   494.3   466.3   6.0   431.2   404.9   6.5   925.5   871.2   6.2  
Wholesale (3)   38.3   64.7   (40.8)   8.6   7.7   11.7   46.9   72.4   (35.2)  
Total   532.6   531.0   0.3   439.8   412.6   6.6   972.4   943.6   3.1  
 
WATER AND SEWAGE BILLED VOLUME (1) PER REGION - million m 3
  Water Sewage Water + Sewage
Region   1Q19   1Q18   %   1Q19   1Q18   %   1Q19   1Q18   %  
Metropolitan   322.2   299.7   7.5   281.3   260.7   7.9   603.7   560.4   7.7  
Regional (2)   172.1   166.6   3.3   149.9   144.2   4.0   322.0   310.8   3.6  
Total retail   494.3   466.3   6.0   431.2   404.9   6.5   925.5   871.2   6.2  
Wholesale (3)   38.3   64.7   (40.8)   8.6   7.7   11.7   46.9   72.4   (35.2)  
Total   532.6   531.0   0.3   439.8   412.6   6.6   972.4   943.6   3.1  

 

(1) Unaudited.

(2) Including costal and interior regions.

(3) Wholesale volumes of reuse water and non-domestic sewage are included.

 

5. Costs, administrative & selling expenses and construction costs

 

Costs, administrative and commercial expenses and construction costs increased by R$115.0 million in 1Q19 (4.4%). Excluding construction costs, there was an increase of R$157.7 million (7.9%).

As a participation of net revenue, administrative and selling expenses and construction costs accounted for 70.8% in 1Q19, versus  71.1% in 1Q18.

 

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        R$ million  
  1Q19   1Q18 Var. (R$) %  
Salaries and payroll charges and Pension plan obligations   681.0   630.0   51.0   8.1  
General supplies   57.4   55.0   2.4   4.4  
Treatment supplies   86.7   75.9   10.8   14.2  
Services   422.2   377.1   45.1   12.0  
Electricity   283.0   221.9   61.1   27.5  
General expenses   191.7   246.2   (54.5)   (22.1)  
Tax expenses   15.8   16.0   (0.2)   (1.3)  
Sub-total   1,737.8   1,622.1   115.7   7.1  
Depreciation and amortization   410.8   328.0   82.8   25.2  
Allowance for doubtful accounts   7.8   48.6   (40.8)   (84.0)  
Sub-total   418.6   376.6   42.0   11.2  
Costs, administrative and selling expenses   2,156.4   1,998.7   157.7   7.9  
Construction costs   590.9   632.7   (42.7)   (6.7)  
Costs, adm & selling expenses and construction costs   2,746.4   2,631.4   115.0   4.4  
% of net revenue   70.8   71.1      

 

5.1. Salaries and payroll charges and Pension plan obligations

 

In 1Q19, there was an increase of R$51.0 million or 8.1%, due to the following:

 

·         Increase of R$53.3 million in medical expenses;

·         Increase of R$13.3 million in salaries, mainly due to the salary increase of 1.3% in May 2018, the hiring of 1,019 employees in 2018 and the application of 1.0% referring to the Carrer and Salaries Plan (Plano de Cargos e Salários) in February 2019;

·         Higher overtime expense, reaching R$7.5 million; and

·         Increase in expenses with meal voucher and food supplies basket, reaching R$5.0 million.

 

The above increases were partially offset due to:

 

·         Decrease of R$25.5 million in the provision for the Profit-Sharing Program; and

·         Lower provision for retired Consent Decree ( Termo de Ajustamento de Conduta – TAC) expenses, reaching R$5.3 million.

 

5.2. Treatment materials

 

Increase of R$10.8 million or 14.2%, mainly due to the greater need to use coagulants and disinfectants in the water treatment, mainly in Water Treatment Station ABV.

 

5.3. Services

 

Expenses with services, totaling R$422.2 million, increased by R$45.1 million or 12.0% over the R$377.1 million in 1Q18. The increase was mainly due the :

 

·         Increase of hiring of technical and professional services in 1Q19, totaling R$20.4 million, mainly related to: (i) the start of operations in the municipality of Guarulhos in January 2019, totaling R$7.6 million; (ii) services of management and operation of call centers, totaling R$3.1 million; and (iii) maintenance services and IT technical support, totaling R$2.9 million; and

·         Greater use of maintenance services in water and sewage networks and systems, totaling R$16.2 million.

 

 

 

 

Page 4 of 11


 
 

5.4. Electricity

 

Electricity expenses totaled R$283.0 million in 1Q19, up R$ 61.1 million or 27.5% over R$221.9 million in 1Q18. The key factors that influenced this variation were:

 

·         Average decrease of 2.2% in energy prices of the Free market tariffs ( Ambiente de Contratação Livre - ACL), down 5.3% in consumption;

·         Average increase of 34.6% in the Grid market tariffs ( Tarifas de Uso do Sistema de Distribuição - TUSD), down 26.2% in consumption; and

·         Average increase of 16.1% in Regulated market tariffs ( Ambiente de Contratação Regulada - ACR), up 43.8% in consumption.

 

In 1Q19, of total electricity expenses, the free market accounted for 22%, while TUSD corresponded to 11% and the regulated market accounted for 67% of this total.

 

5.5. General expenses

 

A decrease of R$54.5 million or 22.1%, totaling R$191.7 million in 1Q19, over R$246.2 million in 1Q18, mainly due to reversals of lawsuits, totaling R$45.9 million, due to changes in expected loss.

 

5.6. Depreciation and Amortization

 

Depreciation and amortization expenses increased R$82.8 million or 25.2%, due to the start-up of intangible assets, totaling R$6.1 billion, of which R$3.2 billion referring to the São Lourenço Production System.

 

5.7. Allowance for doubtful accounts

 

Decrease of R$40.8 million, mainly due to the lower delinquency rate in 1Q19, of which R$29.9 million is related to the provisioning of revenue losses with the municipality of Guarulhos in 1Q18.

 

6. Financial result

 

        R$ million  
  1Q19   1Q18   Var.   %  
Financial expenses, net of income   (150.7)   (67.2)   (83.5)   124.3  
Net monetary and exchange variation   0.2   (126.7)   126.9   (100.2)  
Financial result   (150.5)   (193.9)   43.4   (22.4)  

 

6.1. Financial expenses, net of income

 

        R$ million  
  1Q19   1Q18   Var.   %  
Financial expenses          
Interest and charges on domestic loans and financing   (81.2)   (78.2)   (3.0)   3.8  
Interest and charges on international loans and financing   (42.4)   (36.6)   (5.8)   15.8  
Other financial expenses   (104.2)   (14.9)   (89.3)   599.3  
Total financial expenses   (227.8)   (129.7)   (98.1)   75.6  
Financial income   77.1   62.5   14.6   23.4  
Financial expenses net of income   (150.7)   (67.2)   (83.5)   124.3  

 

6.1.1. Financial expenses

 

Increase of R$98.1 million, mainly due to:

 

 

Page 5 of 11


 
 

·         Increase of R$5.8 million in interest and charges on foreign loans and financing, mainly due to the higher US Dollar appreciation in 1Q19 (0.6%), when compared to the appreciation in 1Q18 (0.5%); and

·         Increase of R$89.3 million in other financial expenses, mainly due to: (i) higher recognition of interest related to the Public-Private Partnership contracts in 1Q19, reaching R$53.4 million, due to the full start-up of operations of the São Lourenço Production System, in July 2018; and (ii) higher recognition of interest on lawsuits, totaling R$32.4 million.

 

6.1.2. Financial income

 

Increase of R$14.6 million, mainly due to the higher recognition of interest on installment agreements in 1Q19.

 

6.2. Monetary and exchange variation, net

 

        R$ million  
  1Q19   1Q18   Var.   %  
Monetary variation on loans and financing   (16.7)   (19.6)   2.9   (14.8)  
Currency exchange variation on loans and financing   (0.2)   (112.0)   111.8   (99.8)  
Other monetary variations   (8.0)   (9.7)   1.7   (17.5)  
Monetary/exchange rate variation on liabilities   (24.9)   (141.3)   116.4   (82.4)  
Monetary/exchange rate variation on assets   25.1   14.6   10.5   71.9  
Monetary/exchange rate variation, net   0.2   (126.7)   126.9   (100.2)  

 

The effect of the net monetary and exchange rate variations in 1Q19 decreased R$126.9 over 1Q18, mainly due to the decrease of R$111.8 million in exchange rate changes on loans and financing due to the depreciation of the yen versus the real in 1Q19 (-0.2%), when compared to the appreciation in 1Q18 (6.3%), and the fact that the US dollar had no significant variation in the comparison period .

 

7. Income tax and Social contribution

 

The increase of R$35.7 million was due to the higher taxable income in 1Q19, mainly affected by the increase in operating revenue, mostly due to the beginning of the operation in the city of Guarulhos; and mitigated by the increase in costs with electricity and salaries.

 

8. Indicators



 

8.1. Operating

 

 

Operating indicators *   1Q19   1Q18   %  
Water connections (1)   9,484   8,908   6.5  
Sewage connections (1)   7,893   7,345   7.5  
Population directly served - water (2)   26.2   24.9   5.2  
Population directly served - sewage (2)   22.8   21.6   5.6  
Number of employees   14,213   13,610   4.4  
Water volume produced in the year (3)   719   702   2.5  
IPM - Measured water loss (%) (4)   29.9   30.4   (1.6)  
IPDt (liters/connection x day) (4)   291   298   (2.3)  

(1) Total connections, active and inactive, in thousand units at the end of the period.

(2) In million inhabitants, at the end of the period. Does not include wholesale.

(3) In millions of cubic meters.

(4) Does not include Guarulhos

 (*) Unaudited.

 

 

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8.2. Economic

 

Economic Variables at the close of the period*   1Q19   1Q18  
Amplified Consumer Price Index (1)   1.51   0.7  
National Consumer Price Index (1)   1.68   0.48  
Consumer Price Index (1)   1.64   0.04  
Referential Rate (1)   0.0000   0.0000  
Interbank Deposit Certificate (2)   6.40   6.39  
US DOLAR (3)   3.8967   3.3238  
YEN (3)   0.03521   0.03126  

    (1) Annual accrual, in %

    (2) Annual average

    (3) Ptax sale rate on the last day

    (*) Unaudited

 

9. Loans and financing

 

                R$ thousand  
      DEBT PROFILE            
INSTITUTION   2019   2020   2021   2022   2023   2024   2025
onwards  
Total  
Local currency                  
Banco do Brasil   -   -   -   -   -   -   -   -  
Caixa Econômica Federal   57,078   78,813   82,956   87,424   79,923   78,310   883,200   1,347,704  
Debentures   117,925   593,632   481,515   560,631   363,834   206,601   151,884   2,476,022  
BNDES   91,289   103,423   102,970   102,970   97,298   91,803   451,497   1,041,250  
Leasing   13,823   36,481   38,348   40,378   43,175   45,055   352,503   569,763  
Leasing (IFRS 16)   32,703   41,414   18,885   302   63   -   -   93,367  
Others   1,037   1,383   1,383   1,383   1,383   1,383   1,268   9,220  
Interest and other charges   27,237   6,826   -   -   -   -   -   34,063  
Total Local Currency   341,092   861,972   726,057   793,088   585,676   423,152   1,840,352   5,571,389  
Foreign currency                  
IADB   82,199   164,397   164,397   164,397   164,397   164,397   1,392,108   2,296,292  
IBRD   11,845   23,691   23,691   23,691   23,691   23,691   225,130   355,430  
Deutsche Bank 350   291,032   -   -   -   -     -   291,032  
Eurobond   -   1,362,403   -   -   -     -   1,362,403  
JICA   82,305   144,795   144,795   144,795   144,795   144,795   1,222,629   2,028,909  
IDB 1983AB   68,942   68,309   29,975   29,975   28,507   -   -   225,708  
Interest and other charges   49,597   -   -   -   -   -   -   49,597  
Total in foreign currency   585,920   1,763,595   362,858   362,858   361,390   332,883   2,839,867   6,609,371  
Total   927,012   2,625,567   1,088,915   1,155,946   947,066   756,035   4,680,219   12,180,760  

 

10. Capex

 

A total of R$ 787.5 million was invested in the first quarter of 2019.

 

11. Conference calls

 

In English

May 14, 2019 - Tuesday

1:00 pm  US ET / 2:00 pm  (Brasília)

Dial in: + 1 (412) 317-6399

Conference ID: Sabesp

 

Replay available for 7 days

Dial in: +1 (412) 317-0088

Replay ID: 10130641

 

Click here for the webcast

In Portuguese

May 14, 2019 – Tuesday
9:30 am  US ET / 10:30 am (Brasília)

Dial in: +55 (11) 4210-1803

Conference ID: Sabesp

 

Replay available for 7 days

Dial in: +55 (11) 3193-1012

Replay ID: 10000894#

 

Click here for the webcast

 

Page 7 of 11


 
 

 

 

For more information, please contact:

 

Mario Arruda Sampaio

Head of Capital Markets and Investor Relations

Phone.(55 11) 3388-8664

E-mail: maasampaio@sabesp.com.br

 

Angela Beatriz Airoldi                                                                        

Investor Relations Manager

Phone.(55 11) 3388-8793

E-mail: abairoldi@sabesp.com.br

 

 

 

Statements contained in this press release may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, SABESP performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

 

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Income Statement

 

Brazilian Corporate Law     R$ '000  
  1Q19   1Q18  
Net Operating Income   3,878,504   3,699,668  
Operating Costs   (2,337,103)   (2,139,237)  
Gross Profit   1,541,401   1,560,431  
Operating Expenses      
Selling   (191,195)   (175,524)  
Estimated losses with doubtful accounts   (7,760)   (48,631)  
Administrative expenses   (210,381)   (267,980)  
Other operating revenue (expenses), net   7,827   11,492  
Operating Income Before Shareholdings   1,139,892   1,079,788  
Equity Result   1,764   2,817  
Earnings Before Financial Results, net   1,141,656   1,082,605  
Financial, net   (149,546)   (81,784)  
Exchange gain (loss), net   (910)   (112,149)  
Earnings before Income Tax and Social Contribution   991,200   888,672  
Income Tax and Social Contribution      
Current   (310,485)   (325,870)  
Deferred   (33,424)   17,629  
Net Income for the period   647,291   580,431  
Registered common shares ('000)   683,509   683,509  
Earnings per shares - R$ (per share)   0.95   0.85  
Depreciation and Amortization   (410,863)   (327,899)  
Adjusted EBITDA   1,544,692   1,399,012  
% over net revenue   39.8%   37.8%  

Page 9 of 11


 
 

 

  Balance Sheet

 

Brazilian Corporate Law     R$ '000  
ASSETS   03/31/2019     12/31/2018  
 
Current assets      
Cash and cash equivalents   2,205,083   3,029,191  
Trade receivables   1,974,708   1,843,333  
Related parties and transactions   169,052   174,148  
Inventories   70,572   65,596  
Restricted cash   25,993   31,900  
Currrent recoverable taxes   336,079   380,703  
Other receivables   146,274   77,371  
Total current assets   4,927,761   5,602,242  
 
Noncurrent assets      
Trade receivables   197,170   209,083  
Related parties and transactions   670,019   669,102  
Escrow deposits   201,645   152,018  
Water National Agency – ANA   43,965   49,136  
Other receivables   111,053   103,310  
 
Equity investments   57,053   44,587  
Investment properties   47,608   47,620  
Contract assets   7,837,583   7,407,948  
Intangible assets   28,940,478   29,012,460  
Property, plant and equipment   279,120   267,612  
Total noncurrent assets   38,385,694   37,962,876  
 
Total assets   43,313,455   43,565,118  
 
LIABILITIES AND EQUITY   03/31/2019     12/31/2018  
 
Current liabilities      
Trade payables   427,383   465,993  
Borrowings and financing   1,488,194   2,103,612  
Accrued payroll and related charges   510,708   564,830  
Taxes and contributions   168,037   200,563  
Dividends and interest on capital payable   673,744   673,765  
Provisions   504,394   458,387  
Services payable   580,377   454,022  
Public-Private Partnership – PPP   122,431   137,827  
Program Contract Commitments   260,017   230,695  
Other liabilities   139,486   108,938  
Total current liabilities   4,874,771   5,398,632  
 
Noncurrent liabilities      
Borrowings and financing   10,692,566   11,049,184  
Deferred income tax and social contribution   294,666   261,242  
Deferred Cofins and Pasep   140,007   140,830  
Provisions   365,921   434,475  
Pension obligations   2,986,813   2,970,009  
Public-Private Partnership – PPP   3,279,258   3,275,297  
Program Contract Commitments   117,471   142,314  
Other liabilities   363,003   341,447  
Total noncurrent liabilities   18,239,705   18,614,798  
 
Total liabilities   23,114,476   24,013,430  
 
Equity      
Paid-up capital   15,000,000   15,000,000  
Profit reserve   5,100,783   5,100,783  
Other comprehensive income   (549,095)   (549,095)  
Retained earnings   647,291   -  
Total equity   20,198,979   19,551,688  
 
Total equity and liabilities   43,313,455   43,565,118  

 

 

Page 10 of 11


 
 

Cash Flow

 
 

 

 

Brazilian Corporate Law     R$ '000  
  Jan-Mar     Jan-Mar  
  2019     2018  
Cash flow from operating activities      
Profit before income tax and social contribution   991,200   888,672  
Adjustment for:      
Depreciation and amortization   410,863   327,899  
Residual value of property, plant and equipment and intangible assets written-off   3,143   4,282  
Allowance for doubtful accounts   11,070   48,631  
Provision and inflation adjustment   46,101   36,513  
Interest calculated on loans and financing payable   138,978   119,242  
Inflation adjustment and foreign exchange gains (losses) on loans and financing   17,207   131,664  
Interest and inflation adjustment losses   9,524   8,099  
Interest and inflation adjustment gains   (75,621)   (3,929)  
Financial charges from customers   (197,962)   (60,324)  
Margin on intangible assets arising from concession   (13,569)   (14,551)  
Provision for Consent Decree (TAC) and Knowledge retention program (KRP)   (19,313)   7,387  
Equity result   (1,764)   (2,817)  
Provision from São Paulo agreement   119,920   -  
Pension obligations   66,860   59,948  
Other adjustments   (13,163)   6,303  
  1,493,474   1,557,019  
Changes in assets      
Trade accounts receivable   98,414   (77,646)  
Accounts receivable from related parties   11,513   28,282  
Inventories   (4,976)   10,179  
Recoverable taxes   44,624   86,069  
Escrow deposits   (12,324)   (21,891)  
Other accounts receivable   (36,159)   (112,021)  
Changes in liabilities      
Trade payables and contractors   (328,719)   (244,286)  
Services payable   6,435   107,577  
Accrued payroll and related charges   (34,809)   37,686  
Taxes and contributions payable   (92,543)   (160,978)  
Deferred Cofins/Pasep   (823)   (1,413)  
Provisions   (68,648)   (80,597)  
Pension obligations   (50,056)   (52,328)  
Other liabilities   56,069   4,304  
Cash generated from operations   1,081,472   1,079,956  
 
Interest paid   (241,164)   (196,060)  
Income tax and contribution paid   (250,468)   (221,880)  
 
Net cash generated from operating activities   589,840   662,016  
 
Cash flows from investing activities      
Acquisition of contract assets and intangible assets   (209,552)   (229,976)  
Restricted cash   5,907   4,758  
Purchases of tangible assets   (18,796)   (2,786)  
Increase in investment   (10,702)   (655)  
Net cash used in investing activities   (233,143)   (228,659)  
 
Cash flow from financing activities      
Loans and financing      

Proceeds from loans  

103,815   943,048  

Repayments of loans  

(1,154,042)   (681,698)  
Payment of interest on shareholders'equity   (21)   -  
Public-Private Partnership – PPP   (129,157)   (13,892)  
Program Contract Commitments   (1,400)   -  
Net cash used in financing activities   (1,180,805)   247,458  
 
Cash reduce and cash equivalents   (824,108)   680,815  
 
Represented by:      
Cash and cash equivalents at beginning of the year   3,029,191   2,283,047  
Cash and cash equivalents at end of the year   2,205,083   2,963,862  
Cash reduce and cash equivalents   (824,108)   680,815  

 

Page 11 of 11

 

SIGNATURE   
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city São Paulo, Brazil.
Date: May 20, 2019
 
Companhia de Saneamento Básico do Estado de São Paulo - SABESP
By: /s/   Rui de Britto Álvares Affonso     
 
Name: Rui de Britto Álvares Affonso
Title: Chief Financial Officer and Investor Relations Officer
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.


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